Why Are Ferraris So Expensive?
Why are Ferraris so expensive?
Since launching out of Italy in the forties, Ferraris have been considered the classic cool car. With their slick appearance, famed legacy, and a name that rolls off the tongue with an electric charge, Ferrari is a brand that everyone recognizes.
Unfortunately — or fortunately, depending on your outlook — the widespread fame of Ferraris mean that everyone also knows an inconvenient fact about them: they are ridiculously expensive. Now, sure, there are plenty of pricey vehicles out there, such as the Cybertruck, but if you're in the market for a new Ferrari, it'll cost you more than buying a house, and rumors say that the repairs aren't much cheaper. While everyone can agree that the price of a Ferrari is only reasonable if you're a trillionaire, the reason for this inflation is complex.
Low inventory, high demand
If you want to buy a Ferrari, as CNBC outlines, you better be prepared to drop down about $300,000. A Porsche, in comparison, generally costs somewhere in the range of $50,000 to $150,000. Now, to be clear, Ferraris aren't marketed at normal, hardworking people, who buy Hondas with good gas mileage and shop for furniture deals on the Facebook Marketplace. Thus, these pricey vehicles are deliberately designed for the wealthiest people in society, to be used as a status symbol.
One key way that Ferrari keeps their prices high is by building less cars. Call it quality over quantity, or call it greedy profiteering, but Ferrari's endgame can be seen in the numbers: in 2017, Porsche shipped out 246,000 vehicles, while Ferrari only put out 8,398. This low supply ensures that Ferraris become looked at as rare, fascinating creatures, rarely seen in the wild, which thus command high prices. Now, to make sure customers are satisfied, Ferrari does ensure that their vehicles are expensively made, as well. Design is one factor, obviously, since every Ferrari looks like it could've come from an art museum. Ferrari vehicles also come loaded with fancy features, as Business Insider explains, such as their signature steering wheel drive mode-controller, the Manettino.
However, don't underestimate price inflation. According to Motor1, Ferrari's high prices mean that they make the highest profits, per car, of any manufacturer in the world. On average, when you buy a new Ferrari ("as if," says the laughing wallet), the company profits by about $80,000.
Maintenance costs
Now, you can reasonably expect that if you invest thousands of dollars on a car, it'll run pretty well. It's often claimed, though, that Ferraris cost as much to maintain as they make to buy. Are these cars really so pricey to service?
Well, yes — but not as much as you think, according to Jalopnik. Paying nearly $200 for an oil change or $1000 on brake pads probably doesn't fit tidily into the average paycheck, but it also isn't, say, Jeff Bezos-level dough. Of course, said oil change might feel even more expensive once you've dropped over $300,000 on a car, but hey.